Channel conflict and resolution paper

Name: University: Tutor: Course: Date: Responsibilities that suppliers play to manage conflict between multiple channels The internet has revolutionized the way people all over the globe perceive trade, communication, security, education and entertainment…

Introduction

The emergence of electronic commerce has resulted in new business models that proffer marketers with opportunities such as access to diverse markets and reduced business expenses. E-commerce also comes with a bunch of challenges such as channel conflict in many businesses to date (Webb 96). The manner in which a business manages the aforesaid channel conflict is a pertinent aspect in its success. A marketing channel is a set of mutually dependent firms engaged delivering a product or service. Multiple channels arise when a company employs separate channels to sell the same products to markets differing in some important way. A multichannel conflict occurs when the producer/ manufacturer have established two or more different channels to sell the product to the same target market. For illustration, a motor company may have its own retail showroom, authorized dealers, and also sells online. Sometimes, the middlemen come in conflict with the manufacturer, employing both direct and indirect channels of distribution. Such a conflict is known as the multichannel level conflict. A conflict may arise when a producer’s franchise prices its products lower than the middlemen, wholesaler or dealer. Conflicts can also arise when a producer sells a larger range of products through its own outlet than through the wholesaler or retailers (Webb 98). ...

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